YES Bank, Spandana Sphoorty exploring M&A deal? Spandana shares its views

Spandana Sphoorty Financial on Thursday called reports of its biggest shareholder Kedaara Capital having talks with YES Bank for a potential merger & acquisition deal as incorrect and speculative.

It reiterated that its board, corporate promoter and the company remain committed to deliver the business plan under Vision 2025, articulated and approved by the board of directors in July 2022, adding that all steps are being taken to achieve the plan.

In a clarification to BSE, it said: "All the material information/announcement that may have bearing on the operations/performance of the company which include all the necessary disclosures in accordance with regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 have always been disclosed by the company within stipulated time."

Spandana Sphoorty Financial said it will continue to comply with all disclosure and other obligations under all laws as and when they become applicable.

Spandana Sphoorty Financial's clarification came after a report in the Economic Times suggested that private equity investor Kedaara Capital, the biggest shareholder of microfinance lender, had revived plans to sell off the company and was in discussions with YES Bank to explore an M&A deal.

About 18 months ago, Kedaara had shelved a similar plan following allegations by Spandana founder Padmaja Gangireddy that it was selling off the company to Axis Bank at a "throw-away price", the report noted.

On Wednesday, the stock closed at Rs 733.75 on BSE, up 2.70 per cent.